Real Estate Investment Pro Forma
Generated March 23, 2026 — all figures from config.py
Deal Snapshot
| Item | Amount | Financing | Amount |
|---|
| Purchase Price | $400,000 | Purchase Mortgage (0.0% LTV, 30yr amort) | $0 |
| Renovation Budget | $2,059,000 | Renovation Loan (65% of total project cost) | $1,599,000 |
| Closing Costs | $39,500 | Investor Equity | $1,100,000 |
| TI Loan to Tenant | $200,000 | Total Capital Raised | $2,699,000 |
| Project Buffer / Working Capital | $500 | | |
| Total Project Cost | $2,699,000 | | |
Sources & Uses / Investors
10-Year Pro Forma
| Year |
Net Rent |
Operating Expenses |
Net Operating Income |
Total Debt Service |
Capital Reserves |
Net Cash Flow |
CoC Return |
| Year 1 |
$0 |
$14,285 |
-$14,285 |
$69,290 |
$0 |
-$83,575 |
-7.6% |
| Year 2 |
$322,350 |
$71,182 |
$251,168 |
$103,673 |
$12,607 |
$134,888 |
12.3% |
| Year 3 |
$332,259 |
$73,014 |
$259,245 |
$100,989 |
$12,985 |
$145,271 |
13.2% |
| Year 4 |
$342,391 |
$74,894 |
$267,497 |
$98,111 |
$13,375 |
$156,010 |
14.2% |
| Year 5 |
$352,746 |
$76,824 |
$275,921 |
$95,026 |
$13,776 |
$167,119 |
15.2% |
| Year 6 |
$364,878 |
$78,806 |
$286,072 |
$140,795 |
$14,190 |
$131,088 |
11.9% |
| Year 7 |
$379,226 |
$80,841 |
$298,385 |
$140,795 |
$14,615 |
$142,975 |
13.0% |
| Year 8 |
$394,051 |
$82,931 |
$311,121 |
$140,795 |
$15,054 |
$155,272 |
14.1% |
| Year 9 |
$409,370 |
$85,076 |
$324,294 |
$140,795 |
$15,505 |
$167,994 |
15.3% |
| Year 10 |
$425,199 |
$87,279 |
$337,919 |
$140,795 |
$15,970 |
$181,154 |
16.5% |
Rent Detail
| Year |
Base Rent |
Vacancy |
NNN Recovery |
TI Interest |
% Rent Kicker |
Net Revenue |
| Year 1 |
$0 |
$-0 |
$0 |
$0 |
— |
$0 |
| Year 2 |
$252,144 |
-$12,607 |
$38,651 |
$10,401 |
$33,762 |
$322,350 |
| Year 3 |
$259,708 |
-$12,985 |
$39,506 |
$7,717 |
$38,313 |
$332,259 |
| Year 4 |
$267,500 |
-$13,375 |
$40,381 |
$4,840 |
$43,045 |
$342,391 |
| Year 5 |
$275,525 |
-$13,776 |
$41,276 |
$1,754 |
$47,967 |
$352,746 |
| Year 6 |
$283,790 |
-$14,190 |
$42,192 |
$0 |
$53,086 |
$364,878 |
| Year 7 |
$292,304 |
-$14,615 |
$43,129 |
$0 |
$58,409 |
$379,226 |
| Year 8 |
$301,073 |
-$15,054 |
$44,087 |
$0 |
$63,945 |
$394,051 |
| Year 9 |
$310,105 |
-$15,505 |
$45,067 |
$0 |
$69,703 |
$409,370 |
| Year 10 |
$319,408 |
-$15,970 |
$46,069 |
$0 |
$75,691 |
$425,199 |
Operating Expense Detail
| Year |
Property Tax |
Insurance |
Maintenance |
Management Fee |
CapEx Reserve |
Total OpEx |
| Year 1 |
$6,285 |
$8,000 |
$0 |
$0 |
$0 |
$14,285 |
| Year 2 |
$30,411 |
$8,240 |
$12,360 |
$20,172 |
$12,607 |
$83,790 |
| Year 3 |
$31,019 |
$8,487 |
$12,731 |
$20,777 |
$12,985 |
$85,999 |
| Year 4 |
$31,639 |
$8,742 |
$13,113 |
$21,400 |
$13,375 |
$88,269 |
| Year 5 |
$32,272 |
$9,004 |
$13,506 |
$22,042 |
$13,776 |
$90,601 |
| Year 6 |
$32,918 |
$9,274 |
$13,911 |
$22,703 |
$14,190 |
$92,996 |
| Year 7 |
$33,576 |
$9,552 |
$14,329 |
$23,384 |
$14,615 |
$95,457 |
| Year 8 |
$34,248 |
$9,839 |
$14,758 |
$24,086 |
$15,054 |
$97,985 |
| Year 9 |
$34,933 |
$10,134 |
$15,201 |
$24,808 |
$15,505 |
$100,582 |
| Year 10 |
$35,631 |
$10,438 |
$15,657 |
$25,553 |
$15,970 |
$103,250 |
Debt Service Detail
| Purchase Mortgage | Renovation Loan | TI Loan (Landlord → Tenant) |
|---|
| Loan Amount | $0 | $1,599,000 | $200,000 |
| LTV / Funding | 0.0% LTV | 65% of land + construction cost | Tenant improvement allowance |
| Initial Rate | 7.5% | 8.0% | 7.0% |
| Rate After Reset | 7.5% (yr 1+) | N/A | Fixed — no reset |
| Interest-Only Period | 0 years | 0 years | None — amortizing from occupancy |
| Amortization | 30 years (after IO) | 30 years (after IO) | 5 years |
| Total Loan Term | 30 years | 30 years | 5 years |
| Draw Period | N/A | 12 months | Disbursed at occupancy |
| Year |
Mtg Interest |
Mtg Principal |
Reno Interest |
Reno Principal |
Gross Debt Service |
Less: TI Principal |
Net Debt Service |
Total Balance |
| Year 1 |
$0 |
$0 |
$69,290 |
$0 |
$69,290 |
— |
$69,290 |
$1,599,000 |
| Year 2 |
$0 |
$0 |
$127,437 |
$13,357 |
$140,795 |
($37,122) |
$103,673 |
$1,585,643 |
| Year 3 |
$0 |
$0 |
$126,329 |
$14,466 |
$140,795 |
($39,806) |
$100,989 |
$1,571,176 |
| Year 4 |
$0 |
$0 |
$125,128 |
$15,667 |
$140,795 |
($42,683) |
$98,111 |
$1,555,510 |
| Year 5 |
$0 |
$0 |
$123,828 |
$16,967 |
$140,795 |
($45,769) |
$95,026 |
$1,538,542 |
| Year 6 |
$0 |
$0 |
$122,419 |
$18,375 |
$140,795 |
— |
$140,795 |
$1,520,167 |
| Year 7 |
$0 |
$0 |
$120,894 |
$19,901 |
$140,795 |
— |
$140,795 |
$1,500,266 |
| Year 8 |
$0 |
$0 |
$119,242 |
$21,552 |
$140,795 |
— |
$140,795 |
$1,478,714 |
| Year 9 |
$0 |
$0 |
$117,454 |
$23,341 |
$140,795 |
— |
$140,795 |
$1,455,373 |
| Year 10 |
$0 |
$0 |
$115,516 |
$25,278 |
$140,795 |
— |
$140,795 |
$1,430,095 |
Closing Costs Detail
One-time acquisition costs — capitalized into cost basis, not expensed through NOI.
Includes transaction fees, legal costs for entity formation and investor agreements,
and accounting advisory.
| Item |
Amount |
Note |
| Construction Loan Origination Fee (1% of $1.6M) |
$16,000 |
1% of $850K mortgage |
| Appraisal (As-Complete) |
$4,500 |
Third-party lender requirement |
| Environmental Report (Phase I) |
$2,000 |
Environmental liability review |
| Title Insurance & Title Search |
$4,000 |
Lender and owner policies |
| Survey & Recording Fees |
$1,500 |
Municipal recording & deed transfer |
| Real Estate Attorney — Land Purchase & Loan Docs |
$3,000 |
Title review, purchase contract, closing |
| Entity Formation (LLC) |
$1,000 |
LLC formation with state |
| Operating Agreement & Investor Subscription Docs |
$4,000 |
Operating agreement, capital accounts, subscription agreements |
| CPA — Deal Structure, Tax & Basis Advisory |
$2,000 |
Deal structuring, cost basis, depreciation schedule |
| Miscellaneous / Contingency |
$1,500 |
|
| TOTAL |
$39,500 |
|
Renovation Budget
| Category |
Budget |
% of Total |
| Core & Shell (PEMB Steel Frame, Roof, Siding, Storefront) |
$815,000 |
39.6% |
| HVAC (RTUs, Ductwork, Zoning, ERV) |
$185,000 |
9.0% |
| Electrical (800A Service, Panels, All Circuits) |
$180,000 |
8.7% |
| Plumbing, Grease Trap & 100-ft City Connections |
$82,000 |
4.0% |
| Fire Sprinkler System (NFPA 13, Wet-Pipe) |
$25,000 |
1.2% |
| Kitchen Equipment, Hoods & Make-Up Air |
$110,000 |
5.3% |
| Interior Fit-Out (Bar Millwork, AV/Projection, Signage) |
$175,000 |
8.5% |
| Site Work (Parking, Drives, Landscaping, Lighting) |
$125,000 |
6.1% |
| Permits, Architecture & MEP Engineering |
$175,000 |
8.5% |
| Contingency (~10%) |
$187,000 |
9.1% |
| TOTAL |
$2,059,000 |
100.0% |
Cash Flow Exhibit
| Line Item | Q1 Year 1 | Q2 Year 1 | Q3 Year 1 | Q4 Year 1 | Q1 Year 2 | Q2 Year 2 | Q3 Year 2 | Q4 Year 2 | Q1 Year 3 | Q2 Year 3 | Q3 Year 3 | Q4 Year 3 |
|---|
| NET FINANCING |
| Investor Contributions | $1,100,000 | — | — | — | — | — | — | — | — | — | — | — |
| Purchase Mortgage (0.0% LTV, 30yr amort) — net of principal | — | — | — | — | — | — | — | — | — | — | — | — |
| Construction / Renovation Loan (draws) — net of principal | $399,750 | $399,750 | $399,750 | $399,750 | ($3,339) | ($3,339) | ($3,339) | ($3,339) | ($3,617) | ($3,617) | ($3,617) | ($3,617) |
| Net Financing | $1,499,750 | $399,750 | $399,750 | $399,750 | ($3,339) | ($3,339) | ($3,339) | ($3,339) | ($3,617) | ($3,617) | ($3,617) | ($3,617) |
| NET INVESTMENTS |
| Property Purchase Price | ($400,000) | — | — | — | — | — | — | — | — | — | — | — |
| Closing Costs | ($39,500) | — | — | — | — | — | — | — | — | — | — | — |
| Construction / Renovation Costs | ($514,750) | ($514,750) | ($514,750) | ($514,750) | — | — | — | — | — | — | — | — |
| TI Loan to Tenant (net of principal received) | — | — | — | — | ($190,719) | $9,281 | $9,281 | $9,281 | $9,951 | $9,951 | $9,951 | $9,951 |
| Net Investments | ($954,250) | ($514,750) | ($514,750) | ($514,750) | ($190,719) | $9,281 | $9,281 | $9,281 | $9,951 | $9,951 | $9,951 | $9,951 |
| NET OPERATING (Year 2+ — Year 1 is construction only) |
| Net Income | ($20,894) | ($20,894) | ($20,894) | ($20,894) | $27,781 | $27,781 | $27,781 | $27,781 | $29,983 | $29,983 | $29,983 | $29,983 |
| Add: Depreciation & Amortization | $2,051 | $2,051 | $2,051 | $2,051 | $36,368 | $36,368 | $36,368 | $36,368 | $36,368 | $36,368 | $36,368 | $36,368 |
| Operating Cash Flow | ($18,843) | ($18,843) | ($18,843) | ($18,843) | $64,149 | $64,149 | $64,149 | $64,149 | $66,351 | $66,351 | $66,351 | $66,351 |
| NET CASH FLOW | $526,657 | ($133,843) | ($133,843) | ($133,843) | ($129,910) | $70,090 | $70,090 | $70,090 | $72,686 | $72,686 | $72,686 | $72,686 |
| Cumulative Cash Flow | $526,657 | $392,815 | $258,972 | $125,130 | ($4,780) | $65,310 | $135,400 | $205,490 | $278,176 | $350,861 | $423,547 | $496,233 |
Year 1 reflects 0 operational months (construction: 12 months). TI loan ($200,000) disbursed at occupancy (Q5 2026). Purchase mortgage: 30-yr fully amortizing from close. Reno loan: 30-yr amortizing after 12-month draw period. D&A: building (80.0% of cost) / 39 yrs; improvements / 15 yrs. Annual figures divided equally across quarters.
Exit Scenarios
Gross Sale Price = Exit Year NOI ÷ 7.0% exit cap rate.
| Hold |
Exit Year |
Gross Sale Price |
Selling Costs (5.0%) |
Net Proceeds |
Debt Payoff |
Equity from Sale |
Cum. Cash Flow |
Total Return |
Multiple |
IRR |
| 5 yr |
2030 |
$3,744,927 |
$187,246 |
$3,557,680 |
$1,538,542 |
$2,019,138 |
$519,713 |
$2,538,851 |
2.31x |
19.1% |
| 7 yr |
2032 |
$4,053,853 |
$202,693 |
$3,851,160 |
$1,500,266 |
$2,350,894 |
$793,775 |
$3,144,669 |
2.86x |
18.0% |
| 10 yr |
2035 |
$4,599,272 |
$229,964 |
$4,369,308 |
$1,430,095 |
$2,939,214 |
$1,298,195 |
$4,237,409 |
3.85x |
17.1% |
Semiannual Distribution Schedule
Distributions paid semiannually (H1 and H2) from cash flow after debt service.
A $25,000 reserve balance is maintained in the RE entity as a contingency buffer — each year’s CF tops up the reserve to target first, then the remainder is distributed.
Once funded the reserve is not re-withheld each year. Year 1 is the construction period — no distributions.
| Year |
CF After Debt |
Reserve Balance |
Distributable |
H1 Payment |
H2 Payment |
| Year 1 |
-$83,575 |
— |
— |
— |
— |
| Year 2 |
$134,888 |
$25,000 |
$109,888 |
$54,944 |
$54,944 |
| Year 3 |
$145,271 |
$25,000 |
$145,271 |
$72,635 |
$72,635 |
| Year 4 |
$156,010 |
$25,000 |
$156,010 |
$78,005 |
$78,005 |
| Year 5 |
$167,119 |
$25,000 |
$167,119 |
$83,560 |
$83,560 |
| Year 6 |
$131,088 |
$25,000 |
$131,088 |
$65,544 |
$65,544 |
| Year 7 |
$142,975 |
$25,000 |
$142,975 |
$71,487 |
$71,487 |
| Year 8 |
$155,272 |
$25,000 |
$155,272 |
$77,636 |
$77,636 |
| Year 9 |
$167,994 |
$25,000 |
$167,994 |
$83,997 |
$83,997 |
| Year 10 |
$181,154 |
$25,000 |
$181,154 |
$90,577 |
$90,577 |
Per-Investor Annual Distribution
Annual distribution per investor based on pro-rata ownership percentage. Each year’s total splits equally into two semiannual payments.
| Year |
Investor A |
Investor B |
Investor C |
Investor D |
Investor E |
Investor F |
Total |
| Year 1 |
— |
— |
— |
— |
— |
— |
— |
| Year 2 |
$39,560 |
$25,274 |
$19,780 |
$9,890 |
$9,890 |
$5,494 |
$109,888 |
| Year 3 |
$52,297 |
$33,412 |
$26,149 |
$13,074 |
$13,074 |
$7,264 |
$145,271 |
| Year 4 |
$56,164 |
$35,882 |
$28,082 |
$14,041 |
$14,041 |
$7,801 |
$156,010 |
| Year 5 |
$60,163 |
$38,437 |
$30,081 |
$15,041 |
$15,041 |
$8,356 |
$167,119 |
| Year 6 |
$47,192 |
$30,150 |
$23,596 |
$11,798 |
$11,798 |
$6,554 |
$131,088 |
| Year 7 |
$51,471 |
$32,884 |
$25,735 |
$12,868 |
$12,868 |
$7,149 |
$142,975 |
| Year 8 |
$55,898 |
$35,713 |
$27,949 |
$13,974 |
$13,974 |
$7,764 |
$155,272 |
| Year 9 |
$60,478 |
$38,639 |
$30,239 |
$15,119 |
$15,119 |
$8,400 |
$167,994 |
| Year 10 |
$65,216 |
$41,665 |
$32,608 |
$16,304 |
$16,304 |
$9,058 |
$181,154 |
Per-Investor Returns (10-Year Hold)
| Investor | Ownership | Invested | Total Dividends | Total Gain at Sale | Multiple | IRR |
|---|
| Investor A |
36.0% |
$420,000 |
$488,437 |
$1,058,117 |
3.68x |
17.0% |
| Investor B |
23.0% |
$265,000 |
$312,057 |
$676,019 |
3.73x |
17.1% |
| Investor C |
18.0% |
$210,000 |
$244,219 |
$529,058 |
3.68x |
17.0% |
| Investor D |
9.0% |
$105,000 |
$122,109 |
$264,529 |
3.68x |
17.0% |
| Investor E |
9.0% |
$100,000 |
$122,109 |
$264,529 |
3.87x |
17.7% |
| Investor F |
5.0% |
$0 |
$67,839 |
$146,961 |
— |
Sweat equity |
